Notes to the Financial Statements EC1Y 2AB

1 Annual Report & Financial Statements Leg al and For the year ended 31 December 2014 administrative details

Company number CONTENTS 07513900 Charity number Foreword 1141798 P3 Chairman’s foreword Registered office In my capacity as Chairman of the Board of Trustees I am 60 Trafalgar Square pleased to present the Annual Report and Financial London P4 Secretary General’s Introduction WC2N 5DS Statement for the Global New Car Assessment Programme (Global NCAP) for the year ending 31 December 2014. During Trustees the course of the year Global NCAP has significantly extended Mr Max Mosley (Chairman) its work with a series of new initiatives promoting safer P5 Our aims & objectives Mr Nirav Dumaswala (Treasurer) Mr Guido Adriaenssens vehicles in support of the current United Nations (UN) Dr Verona Beckles Decade of Action for Road Safety. P6 Achievements in 2014 Mr Lauchlan McIntosh Mr Anders Lie The report highlights Global NCAP’s main activities in 2014 Mr Adrian Lund which include: the first results of our Safer Cars for India P30 HOW Our work benefits the public Secretary General project; more five star ratings by ASEAN and Latin NCAP; the Mr David Ward launch of a new fleet safety guide; becoming a partner of the Bloomberg Initiative for Global Road Safety; and an impressive P32 How effective we are Administrator Annual Meeting attended by all our partner NCAPs and hosted Ms Shakireh Ispahani by our partner CNCAP at the China Automotive Technology Finance Manager and Research Centre (CATARC) in Tianjin. P34 Moving forward in 2015 Mrs Katie Baker Technical Director This progress has only been possible through the strong support P36 Financial review and policy Mr Alejandro Furas of our associated NCAPs, our technical partner, the Allgemeiner Director of Campaigns and Communication Deutscher Automobil-Club e.V (ADAC), our own management Mr Richard Woods team, and, of course, our donors. We are especially grateful to

P40 Report of the auditor Advisors: Bankers the FIA Foundation for its generous multi-annual grant and Barclays Bank Plc delighted that Bloomberg Philanthropies will be joining as a Barclays Corporate major donor in 2015. We are also pleased to have received grant P41 Principal accounting policies Wytham Court support from the Road Safety Fund, Underwriters Laboratories 11 West Way and the World Bank Global Road Safety Facility (for the Safer Oxford Cars for India project) and also from International Consumer P44 Statement of financial activities OX2 0JB Research & Testing and the Inter-American Development Bank. Auditors Arram Berlyn Gardner LLP This very welcome support comes at a vital time for Global P45 Balance Sheet Chartered Accountants NCAP as we intensify our efforts to contribute to the ambitious 30 City Road goals of the Decade and ensure that all new passenger cars meet London the most important UN safety standards at the latest by 2020. P46 Notes to the financial statements EC1Y 2AB

Website www.globalncap.org With thanks to our supporters:

T rustees’ Annual Report The Trustees present their report on the activities and results for the year ended 31 December 2014. This report describes the main highlights of the year including the M ax Mosley progress made against objectives, the new challenges Chairman being undertaken and the goals being set for the future to Production and Design by Sue Fordham achieve the aims of the Charity.

Our aims and Introduction objectives

Global passenger car production rose to a record 67.5 million units Global NCAP aims to promote public safety and public health, the in 2014. However, at least a third of these vehicles would fail UN protection and preservation of human life and the conservation, impact test standards for occupant & pedestrian protection and protection and improvement of the physical and natural are not equipped with the crash avoidance technology, Electronic environment. Stability Control (ESC). This is the vehicle safety deficit that needs to be eliminated by the end of the current UN Decade of Action in We encourage consumers to demand and manufacturers to supply 2020. safer vehicles by supporting independent testing programmes that assess the comparative safety performance of automobiles. The best way to achieve this is to democratise car safety by ensuring universal application of the most important UN regulations and We provide an international platform for cooperation among New encouraging consumer demand for safer cars. That is why Global Car Assessment Programmes (NCAPs) and similar organisations to NCAP is promoting UN standards and supporting independent share best practice, exchange information, and promote the use crash rating in key emerging markets in Asia and Latin America. The of consumer information to encourage a market for safer motor growing number of five star results being awarded by ASEAN and vehicles worldwide. Latin NCAP shows that this approach is working. We promote the development of NCAP’s in emerging markets In 2014, with our partner the Institute of Road TrafficE ducation, where vehicle growth is strong but consumer safety information is we also published the first results from the Safer Cars for India frequently unavailable. We do this by providing financial support project. The crash tests acted as a catalyst for lively debate and and technical assistance to newly established NCAP’s. we have had promising dialogue with both the Indian Government and car manufacturers. We are optimistic that this will lead to the We carry out research on innovations in vehicle safety technologies, application of UN crash test standards and the launch of a national their application in global markets, and the range of policies that NCAP; ultimately leading to reduction in India’s road fatalities. will accelerate their use and then track progress of vehicle safety across the globe. In 2015 we will launch a major advocacy initiative ahead of next November’s High Level Global Conference on Road Safety hosted We have also developed a global awards scheme to recognize by the Brazilian Government. The meeting will carry out a mid-term achievement in vehicle safety, innovation in safety-related review of the Decade of Action to which Global NCAP will submit technologies and products. a ‘Road Map for Safer Cars 2020’ setting out key recommendations for governments and vehicle manufacturers. We want to empower Global NCAP has consultative status with the United Nations consumers in a global vehicle market underpinned by universal (ECOSOC), is a member of the UN Road Safety Collaboration, and application of the UN’s most important safety standards. As we supports the UN Decade for Action for Road Safety 2011-2020 and reach the mid-point of the UN Decade it is time to step up the the implementation of the Global Plan for the Decade, particularly action in favour of safer vehicles and prevent so many unnecessary its vehicle related recommendations which form part an overall and avoidable fatalities. strategy to achieve a world free from road fatalities.

David Ward Secretary General

4 5 Annual Report & Financial Statements For the year ended 31 December 2014

Achievements in 2014

In 2014 Global NCAP has continued to support and develop car safety and environmental programmes that are making a real and measurable impact. Progress on main activities and projects undertaken during the reporting period are detailed below. Further details are available from the Secretary General.

6 7 Annual Report & Financial Statements For the year ended 31 December 2014

Safer Cars for India

In January 2014 the first results of the Safer received a four-star rating for adult occupant Cars for India project were released at a protection. The news coverage generated by Conference held in New Delhi, hosted by the launch in January was extensive in both Global NCAP’s partner the Institute of Road the Indian and international media and was Traffic Education (IRTE). The first phase of featured on NDTV’s influential Car and Bike the project tested five popular and important Show. models to assess their performance in the UN’s frontal impact crash test (Reg. 94) On 3 November a second set of test results carried out at 56 km/h and at also at the were released at a conference hosted by higher speed of 64 km/h typically used by IRTE and Global NCAP in association with NCAPs. The models tested included India’s the Ministry of Road Transport and Highways. best-selling cars, the Suzuki-Maruti Alto 800, The test results featured the Datsun Go, a the Tata Nano, Ford Figo, Hyundai i10 and new design launched in 2014, and the Maruti Volkswagen (VW) Polo. Combined sales of Suzuki Swift both with and without airbags. these five cars account for around 20% of all The Go scored zero stars as its body structure the new cars sold in India in 2013. collapsed making it redundant to even fit an airbag. With no airbags, the Swift also The results highlighted major differences scored zero stars. However, although its body in the structural integrity of the vehicles shell was unstable the car would benefit from tested. The body shells of the Alto 800, the airbags. In a separate test of a version with Nano and the i10, proved inadequate and air bags (sold in Latin America) it scored three collapsed to varying degrees, resulting in stars which clearly demonstrated the model’s high risks of life-threatening injuries to the potential for improvement. occupants. These models also lacked airbags but their structural weaknesses were such Speaking at the Delhi conference the Minister that fitting airbags would have uncertain of State for Road Transport, Highways and effectiveness in reducing the risk of fatal Shipping, Krishan Pal, stressed that “safety or serious injury. The Figo and Polo had should be required not just for cars to be structures that remained stable. All but one of exported but also those sold in India”. IAS the five models failed theR eg. 94 test and all Secretary Vijay Chibber also outlined the scored zero stars at 64 km/h as a result either Government’s proposal to launch a new of poor structural integrity or lack of air bags. Bharat New Vehicle Safety Assessment Programme (BNVSAP) and commented that Coinciding with the Global NCAP tests, VW the results of the Safer Cars for India project decided to withdraw the non-airbag version served as “a wake-up call to industry”. Once of the Polo from sale in India. Global NCAP again the test results obtained extensive news then agreed to a request from VW to assess a coverage in India and elsewhere and were version of the Polo that has two airbags fitted strongly promoted again by NDTV’s Car and as standard. The airbag-equipped model Bike Show.

David Ward highlighting the poor result of the Tata Nano which fails to meet UN minimum crash test standards and is not equipped with rear seat belts making it impossible8 to even use a child seat 9 Annual Report & Financial Statements For the year ended 31 December 2014

ASEAN New Car Assessment Programme

In May 2014 ASEAN NCAP released its Phase Perodua Axia and Tata Vista. The Honda 3 results testing 11 models. This achieved an City broke a record high in Adult Occupant important strategic key to ensure that all ten Protection by scoring 15.80 points which is a of the major manufacturers’ top selling cars five star result.T he previous record was held are tested by the programme. The eleven by the Ford Fiesta which scored 15.73. It also cars tested were, the Proton Prevé, VW Polo, achieved a four star rating for Child Occupant Chevrolet Sonic, Chevrolet Colorado, Toyota Protection. The variants without ESC and Corolla Altis, Toyota Corolla Altis 2.0 (optional front occupants’ Seat Belt Reminders (SBR) Professor Dr Wong Shaw Voon safety package for Malaysia’s market), Honda scored four stars. The Honda Jazz (2014) also (Chairman of ASEAN NCAP) with Lauchlan McIntosh (Chairman CR-V, Isuzu D-Max, Peugeot 208, Kia Picanto, scored a dual rating, with five and four star of ANCAP) at the Automobile and Kia Picanto (non-airbag version). All rating in Adult Occupant Protection; variants Safety Forum in Kuching cars scored between 4 and 5 stars for Adult without ESC and/or both front occupants’ SBR and Child Occupant Protection, aside from received a four star rating for Adult Occupant the Kia Picanto (Non-Airbag version), which Protection. It also scored a four star rating for received a zero star rating for Adult Occupant Child Occupant Protection. The Perodua Axia, Protection and a one star rating for Child which was manufactured in Malaysia for the Occupant Protection. This result contrasted Malaysian market, scored a four star rating with that of the airbag version which again for Adult Occupant Protection and four star highlights the important role of airbags in rating for Child Occupant Protection and is saving lives provided that the structural the most affordable four star available in the integrity of the vehicle is adequate. ASEAN region, costing MYR 24,900 (£4,600). The Tata Visa, which is produced in India and On 27 August ASEAN NCAP held its only available in Indonesia and Myanmar was inaugural Automobile Safety Forum in the first Indian manufactured car to undergo Kuching bringing together the region’s an ASEAN NCAP assessment. It scored a three road safety experts from Brunei, Thailand, star rating for Adult Occupant Protection and a Indonesia, Vietnam, Philippines and Laos. 3-Star for Child Occupant Protection. The event also featured ASEAN NCAP 2014 Grand Prix Awards. These recognised best Then in December 2014, ASEAN NCAP results achieved since ASEAN NCAP was announced that the Nissan Teana became launched in 2012 and also featured other the first car to achieve full points in Adult awards for safety technology (OEM and Occupant Protection and a five star rating in car maker category), appreciation award to Child Occupant Protection with 88 percent organizations supporting their work. Global compliance. These results show that ASEAN NCAP was very honoured to receive such an NCAP has quickly become an effective award which was accepted by our Secretary enabler for safety culture in South East Asia. General David Ward. They are changing the perception that “safe” means “expensive”, and are encouraging car A further four cars were tested in September; manufacturers to improve the safety of their the Honda City (2014), Honda Jazz (2014), models at affordable prices.

10 11 Annual Report & Financial Statements For the year ended 31 December 2014

Latin New Car Assessment Programme

The process of establishing Latin NCAP as In October 2014 the VW Golf joined Latin a legal entity made significant progress with NCAP’s growing club of five stars models scoring its Inaugural Annual Meeting being held in the maximum possible star rating in adult occu- Montevideo, Uruguay in May. Nani Rodríguez, pant safety. It also became the very first model President of the Fundación Gonzalo to achieve five stars for child occupant safety in Rodríguez was elected Latin NCAP President Latin NCAP. Taken together the five star ratings of the Board of Directors and Alejandro Furas, for adult and child occupants, the Golf became Global NCAP’s Technical Director and Latin the best combined results awarded so far by NCAP appointed Secretary General. The legal Latin NCAP. The Toyota Corolla also achieved entity now awaits official registration by the five stars for adult occupant safety and four Uruguayan authorities. stars for child occupant safety. The Corolla only narrowly missed meeting the requirements to Latin NCAP has tested over 50 cars since its reach the maximum star rating in Child Occu- launch in 2010 and become a major stimulus pant safety. Both manufacturers have also used for passenger car safety in the region. By their Latin NCAP cores in their own promotional 2014 five models have been awarded 5 star advertising of the models. ratings which is a level of safety well above and in advance of regulatory requirements. The final car to be tested in Latin NCAP’s Fifth Phase was the basic (non-airbag) version of The first set of results in Latin NCAP’s fifth the Lifan 320, but was scored a disappointing phase were released in August and showed zero stars in both Adult and Child Occupant some progress by Peugeot and FIAT protection. The 320’s structure was rated as although the performance of General Motor’s unstable which allowed the detachment of Chevrolet brand was disappointing. The the steering wheel on impact which puts in Peugeot 208 achieved four stars for adults question the performance of the version of and three stars for child occupant protection. the car with airbags. A non-air bag version of the FIAT New Palio was tested with a zero star result. However, in Media coverage for Latin NCAP also increased May FIAT stopped all production of the New substantially in the region this year. In March Palio without airbags and the version with Latin NCAP invited media to a crash test at the airbags improved to three star rating. The ADAC laboratory. Reporters from Argentina, Chevrolet Spark (no airbags) scored zero stars Brazil, and Chile attended and resulted in in adult occupant protection and two stars in extensive news coverage and helped to the child occupant protection. The Chevrolet deepen the media’s understanding of Latin Onix was rated three stars in adult occupant NCAP’s work. In Chile, for example, with the protection and two stars in the child occupant support of the Chile Automobile Club, Latin protection. After the test Chevrolet updated NCAP’s July results obtained 15 TV news its Seatbelt Reminder (SBR) system showing reports highlighting the need for basic safety how manufacturers are positively reacting to equipment and encouraging consumers to use Latin NCAP’s ratings. safety ratings before buying.

12 13 Annual Report & Financial Statements For the year ended 31 December 2014

Fleet Buyers Guide and the Melbourne Declaration on Fleet Safety

HRH Prince Michael of Kent presenting Global NCAP’s 2014 Innovation Award to Dr Andrew Lewin, Vice President Safety & Security of BHP Billiton On 5 May 2014 Global NCAP held a special acceptable levels of protection to their Forum on Fleet safety in Melbourne, Australia employees. Motivated by a combination of hosted by ANCAP. At the event Global NCAP duty of care for employees, corporate social published its 2014-15 Fleet Safety Guide responsibility and effective cost controls, and Safer Car Purchasing Policy and adopted a growing number of organisations are the Melbourne Declaration on Fleet Safety. introducing fleet safety policies and selecting The Guide and Declaration recommend that only five star cars for their employees. fleet managers only buy ‘five star’ cars and always endeavour to select vehicles that meet Global NCAP’s guidelines are consistent UN regulations for pedestrian protection, with the recommendations of the Global electronic stability control and where possible Plan of the UN Decade of Action, which autonomous emergency braking. encourages “managers of government and private sector fleets to purchase, operate and In a foreword to the guidelines, HRH Prince maintain vehicles that offer advanced safety Michael of Kent GCVO, Patron of the technologies and high levels of occupant Commission for Global Road Safety, said: “By protection”. Global NCAP’s guidelines will adopting Global NCAP’s recommendations, also help organisations wishing to adopt the organisations will ensure that their purchase new road traffic safety standard ISO 39001, decisions meet best practice in safety which identifies vehicle safety as a significant management and make an important factor for fleet operators seeking to reduce contribution to the UN Decade of Action.” death and injury in road crashes. Road crashes in many countries are a major source Following Global NCAP’s new guidelines will of workplace death or injury and ensuring make it easier for organisations to ensure employees drive in safe cars will make a that the safety of their vehicle fleet provides difference.

14 15 Annual Report & Financial Statements For the year ended 31 December 2014

Global NCAP Annual Awards

Each year Global NCAP presents awards Consumer Champion recognizing three categories of achievement Australasian NCAP for their leadership and in consumer related automobile safety as support for consumer safety in the Asia Pacific follows: region.

Consumer Champion Award Individual Achievement offered to an organisation promoting the founders of Australasian NCAP: consumer rights and information relating to Michael Case, Christopher Coxon, Michael motor vehicle safety. Griffiths, Jack Haley, Lauchlan McIntosh and Michael Paine. Individual Achievement Award offered to an individual who has made an Innovation outstanding contribution to motor vehicle BHP Billiton in recognition of their Fatal safety and protection of consumers. Risk Control Policy adopted in 2012 which includes a five star requirement for all leased Innovation Award or owned light duty vehicles. offered to an organisation that has made an outstanding contribution to innovation The Awards were presented by in motor vehicle safety, technology HRH Prince Michael of Kent GCVO development, and design. at a special ceremony during the Global NCAP Forum in Melbourne, Australia on In 2014 the winners were: 5 May.

16 17 Annual Report & Financial Statements For the year ended 31 December 2014

Child Restraint Systems

In 2014 we supported a Child Restraint that secures the seat by fixed mountings Systems (CRS) project in Latin America carried rather than the adult seat belt; out by International Consumer Research and Testing (ICRT), together with the Gonzalo - Counterfeit products and false labelling in Rodrigeuz Foundation and ProTeste (the which sub-standard seats are being sold Brazilian consumer’s organisation). This that claim to meet the UN’s basic CRS was the second year of a project assessing standard (UN Regulation 44); CRS on the market in the region with the aim to promote their use, raise consumer - Lack of affordable child seats which can awareness and support training for their be overcome by growing the global CRS correct installation. Fifteen CRS products market with greater standardisation to were tested selected on their availability in reduce unit costs, and stimulating demand Latin America. The results were launched in by sales tax reductions and elimination of November and showed a varied performance tariffs that inhibit the international trade in with considerable scope for improvement. child seats. The project’s results for both 2013-14 were then presented at the annual ‘Protection of - Misuse by parents choosing seats that Children in Cars’ conference held in Munich in are wrong for the child’s age or weight December. and incorrect securing of the harness; problems that can be reduced by the Also in December, David Ward, Global ISOFIX system; NCAP’s Secretary General, spoke at the Safe Kids Worldwide Global Road Safety Summit In 2014, however, there has also been in Washington DC, warning that CRS use encouraging progress with both ASEAN and especially in the rapidly motorising countries Latin NCAP awarding their first ever five star is far too low and inhibited by a combination results for child occupant protection. The of factors including: Nissan Teena and the VW Golf both obtained the coveted five star rating using child - Lack of application of UN regulations restraints that meet UN safety standards and requiring the ISOFIX anchorage system use the ISOFIX anchorage system.

18 19 Annual Report & Financial Statements For the year ended 31 December 2014

C apacity Building and Training Initiative

In June 2014, Global NCAP co-organised Commission in the State of Victoria, Australia with the Asian Development Bank (ADB) and the role of NCAPs by Khairil Anwar, a workshop on vehicle safety held at the Secretary General of ASEAN NCAP. bank’s headquarters in Manila. The ‘Train the Trainers’ workshop for governments from For the Inter-American Development Bank the ASEAN region outlined the benefits of (IDB), Global NCAP has also been providing United Nations regulations in motor vehicle technical advice and training to strengthen safety and the role of New Car Assessment Ecuador’s vehicle regulatory system. The Programmes (NCAPs) in promoting a market project involved the development of a for safety. new regulation and related training for five engineers over a two week period at the Participants were given an overview of ADAC laboratory. The course focused on the vehicle safety in the UN Decade of Action technical and administrative aspects of the by David Ward, Global NCAP’s Secretary UN regulations, with special emphasis on General. This was followed by presentations the frontal crash test for regulation UN94. As on crashworthiness by Alejandro Furas, more middle and low income countries try to Global NCAP’s Technical Director, and crash align their vehicle regulations with minimum avoidance by Jessica Truong, Road Safety UN safety standards more of this kind of Project Manager at the Transport Accident capacity building will be needed.

20 21 Annual Report & Financial Statements For the year ended 31 December 2014

2014 Annual Meeting

The 2014 Global NCAP Annual meeting to view a side impact and car-to-car crash was held on 29-31 October, at the China test; a roundtable seminar on NCAP Automotive Technology and Research activities worldwide with an informal Q&A Centre (CATARC) in Tianjin, China. Hosted session with industry representatives; by Mr Zhao Hang, President of CATARC and a special summit on the UN Decade and Chairman of CNCAP, the meeting was of Action, the first of its kind to be held in attended by representatives of ASEAN, China. Australasian, China, European, Japan, Korean, Latin and US NCAPs and the Insurance The guest of honour at the summit was Institute for Highway Safety. Global NCAP’s HRH Prince Michael of Kent GCVO who Annual Advisory Council meeting reviewed remarked that “CATARC and CNCAP are the organisation’s progress in 2014 and plans pushing the boundaries of both technology for 2015. Technical and Communications and consumer awareness. With international Working groups were also held to promote partners, like Global NCAP, you are helping closer cooperation and exchange of ideas to spread knowledge and best practice among our NCAP partners. worldwide. This is exactly the kind of leadership role that the UN Decade The Annual Meeting also featured: a visit needs if its ambitious life-saving goal is to CATARC’s impressive laboratory complex to be realised.”

22 23 Annual Report & Financial Statements For the year ended 31 December 2014

Tianjin Declaration on Electronic Stability Control

The Annual Meeting also adopted the Global NCAP’s Declaration applauded Australia, Tianjin Declaration on electronic stability Canada, the European Union, Israel, Japan, control (ESC). The declaration asks all UN the Republic of Korea, the Russian Federation, Member States, especially those that produce Turkey, and the United States of America, for automobiles, to mandate ESC in new models making this life-saving technology mandatory by 2018 and in all automobiles by 2020 at the and welcomed similar legislative commitments latest. recently made by the Governments of Argentina and New Zealand (which will be ESC is the most significant advance in applied in 2018 and 2015 respectively). vehicle safety since the introduction of the seatbelt and this anti-skid technology has In the European Union, where ESC became a helped prevent hundreds of thousands of mandatory requirement in all new cars from 1 loss of control crashes and saved tens of November 2014 it is estimated that since 1995 thousands of lives. ESC uses sensors to at least 188,500 crashes involving injury have continuously monitor the vehicle’s stability. been avoided and more than 6,100 lives saved On dry, wet, or slippery roads if the vehicle by ESC. Global NCAP believes that the current starts to skid, the system corrects the slide ESC global fitment rate of approximately 59% by reducing engine torque and braking of new passenger and light duty vehicles is low individual wheels to bring the vehicle back on and it is hoped that this can be raised to 100% course. by 2020 at the latest.

24 25 Annual Report & Financial Statements For the year ended 31 December 2014

UN Decade of Action for Road Safety

In 2014 Global NCAP participated in the development of new NCAPs in both Asia and 19th and 20th meetings of the UN Road Latin America. Safety Collaboration (UNRSC) held in New York on 8-9 April and in Geneva on 6-7 During the debate a number of speakers October. In New York David Ward gave highlighted the important role being played a presentation on the potential of crash by NCAPs. Michelle Yeoh, representing avoidance systems to reduce pedestrian Malaysia, mentioned the efforts of ASEAN deaths explaining that emergency braking NCAP and Lord Robertson, representing the systems combined with softer car fronts UK, welcomed the funding support of the FIA can reverse the rise in pedestrian fatalities. Foundation for Global NCAP’s work with both He also described the assessment activities ASEAN and Latin NCAP. David Ward joined for pedestrian safety being undertaken by Lord Robertson as part of the UK Delegation NCAPs around the world. This included Euro in the debate, in his capacity as Secretary of NCAP’s pedestrian safety ratings and research the Commission for Global Road Safety. carried out by the Insurance Institute for Highway Safety and the German automobile In October the UNRSC met in Geneva and club, the ADAC. reviewed progress on implementing the Global Plan for the UN Decade of Action The UNRSC meeting coincided with a major in advance of the 2nd High Level Global debate on road safety in the UN General Conference on Road Safety to be hosted by Assembly and the adoption of a new the Brazilian Government on 18-19 November resolution which, inter alia, “encourages 2015. In the UNRSC David Ward continues to the implementation of new car assessment serve as Chairman of the Vehicle Safety Project programmes in all regions of the world in Group and Shakireh Ispahani as the Group’s order to improve the availability of consumer Secretary. Global NCAP’s Technical Director, information about the safety performance Alejandro Furas continues to attend meetings of motor vehicles”. This decision represents of the UN World Forum for Harmonisation a strong endorsement of the mission of of Vehicle Regulations (UNECE WP29) giving Global NCAP and its work supporting the occasional updates on Global NCAP’s work.

26 27 Annual Report & Financial Statements For the year ended 31 December 2014

Environmental Issues

In May Global NCAP participated in the 10th Together with the Global Fuel Economy General Partners Meeting of the Partnership Initiative and the ADAC, we are exploring the for Clean Fuels and Vehicles (PCFV) hosted potential for an eco-rating system based on by the UN Environment Programme (UNEP) in the new passenger car driving cycle that has Paris. The PCFV has played a leading role in been developed by the UNECE WP29. As ‘green’ automotive issues having led the global part of this research activity the cars used in campaign to eliminate lead in fuel and also the Safer Cars for India have also been tested to reduce the sulphur content to promote the for their environmental performance using the effectiveness of emission control technologies. ADAC’s exiting ‘EcoTest’ methodology.

Partnership for Clean Fuels and Vehicles

The Partnership for Clean Fuels and Vehicles (PCFV) is the leading global public- private initiative promoting cleaner fuels and vehicles in developing and transition countries.

Established at the World Summit on Sustainable Development in September 2002 in Johannesburg, the PCFV brings together 72 organizations representing developed and developing countries, the fuel and vehicle industries, civil society, and leading world experts on cleaner fuels and vehicles. Our partners combine their resources and efforts to achieve cleaner air and lower greenhouse gas emissions from road transport by applying fuel quality improvements and proven vehicle technologies in use in leading global auto markets.

Following the successful ten-year campaign to end the use of leaded petrol on a global scale, the PCFV was re-launched in October 2012 in London with a renewed focus on;

The Lead Campaign: an effort aimed at completing the phase out of leaded petrol in the last countries still using TEL, and to ensure that only catalyst equipped vehicles will be added to national fleets in countries that have completed phase-out;

The Sulfur Campaign: an effort to promote the introduction of low sulfur fuels of 50 ppm or less together with the adoption of advanced vehicle emissions standards

28 29 Annual Report & Financial Statements For the year ended 31 December 2014

Ho w our work benefits the public

According to the World Health Organisation 2020 and supports the full implementation (WHO) each year 1.3 million people are of the Decade’s Global Plan. To meet these killed and up to 50 million injured in road life-saving goals Global NCAP aims to crashes worldwide. The global vehicle fleet improve the quality of new vehicles being reached 1 billion in 2010 and is forecast sold especially in the fast growing markets to double in the next ten to fifteen years. of middle income countries. This is the This unprecedented increase is occurring leverage point where the twin track regulatory in low and middle income countries which ‘push’ and demand ‘pull’ action needs to account for 90% of total road deaths. be applied. The sooner that all new vehicle About 48% of all traffic fatalities are vehicle models are required to meet acceptable occupants; so to avoid a growing global safety standards the quicker will be the burden of road injury, improvement in overall improvement in passenger car safety automobile safety, especially in rapidly worldwide. In contrast the continued sale of motorising regions, is essential. millions of new sub-standard cars in rapidly motorising countries will leave a worrying The winning formula for better car safety is legacy for decades of avoidable fatality risk. the combination of regulatory “push” and demand “pull”. Government regulation NCAPs use consumer information to promote supplemented with consumer information the purchase of safer cars which, in turn, helps to build a market for safety and encourages the automobile manufacturers reduce death and serious injuries on the to sell safer products. This influences both road. This strategy applied over more than individual buyers, and also fleet managers three decades by high income countries has in both the public and private sector. They improved road safety and saved the lives are widely recognised as highly effective in of hundreds of thousands of people. The promoting the supply and demand for safer challenge now is to achieve the same positive vehicles. Global NCAP was established in experience in the rapidly growing automotive 2011 to provide a platform for cooperation markets of the low and middle income among NCAPs worldwide to share best countries where the risk of road injury is the practice, and to support the emergence of highest in the world. new testing programmes in rapidly motorizing regions. In this way we aim to meet our public Global NCAP supports the UN Decade benefit obligations by contributing to the of Action for Road Safety (2011-2020) Decade of Action’s objective to halve the mandated by the UN General Assembly forecast level of road fatalities by 2020.

30 31 Annual Report & Financial Statements For the year ended 31 December 2014

Ho w effective are we?

Global NCAP is uses a number of criteria assist both ASEAN and Latin NCAP. We hope to measure the effectiveness of both to further increase our donor support base our own activities and that of our grant and generate possible income sources from recipient partners. These include: resource vehicle testing and training activities. mobilisation; partner mobilisation; innovation; sustainability and impact effects. Impact effects

Resource mobilisation In 2014 we have continued to see increasing number of five star ratings being awarded In 2014 our support to ASEAN and Latin to models in both ASEAN and Latin NCAP. NCAP and the Safer Cars for India project has Manufacturers are also responding by succeeded in leveraging additional resources improving vehicle specification – such both from vehicles independently selected as making air bags a standard fit.T his but tested at the manufacturers own expense, demonstrates the demand pull of NCAP testing and from philanthropic sources. The volume in action. Media coverage of our partner of testing activity has, therefore, continued to NCAPs and the Safer Cars for India Project increase. also contributes to raising consumer awareness of the importance of choosing cars that at Partner mobilisation the least meet the minimum UN crash test standards. It is premature to claim significant In 2014 we have continued to deepen our injury reduction so early in Global NCAP’s engagement with our NCAP partners both life. However, over time these impact effects through our periodic forum events and the accelerate the penetration of safer vehicles and Annual General Meeting. We have also technologies and will reduce fatality levels. This extended our cooperative activities with a contributes to the UN Decade of Action and range of key stakeholders, including regional the implementation of its Global Plan. development banks, UN agencies and donors. Social media Innovation Global NCAP utilises social media as a core In 2014 through the Safer Cars for India part of its communications activities. Twitter project we have organised the first ever and Facebook are the primary channels. They independent crash testing of popular and have enabled Global NCAP to communicate important cars on the Indian market which has and engage with organisations and individuals acted as a catalyst for initiatives by the Indian in order to meet both advocacy and Government to establish their own NCAP programmatic objectives. Through social programme. Also our Fleet Safety Guide and media, Global NCAP has been able to target Safe Car Purchasing Policy aims to build more its communications effectively and also connect market demand for five star vehicles among with a wider audience. Communications on commercial and public sector fleet operators. social media are managed with appropriate diligence and care. They are controlled by the Sustainability Secretary General to ensure that Global NCAP’s objectives are met and risks managed. In 2014 we have succeeded in obtaining support from a major new donor, Bloomberg Links to our sites are: Philanthropies, which helps diversify our Twitter: https://twitter.com/GlobalNCAP funding source and enhance our capacity to Facebook: https://www.facebook.com/globalncap

32 33 For the year ended 31 December 2014

THE GLOBAL GOALS For Sustainable Development

PARTNERSHIPS FOR THE GOALS

Moving forward in 2015

2015 is going to be an important year for agenda with a road map of recommendations global road safety and mobility issues as the to be implemented by 2020. UN prepares to adopt a new framework of Global Goals for Sustainable Development. As a result of our participation in the The likely text to be adopted includes road Bloomberg Initiative for Global Road Safety safety in two goals for health and cities and in 2015 we will also be able to continue will include fatality reduction of 50% by 2020. assisting the development of ASEAN NCAP, So the new Global Goals will hopefully set Latin NCAP and the Safer Cars for India a significant challenge to high, middle, and project. These successful initiatives will remain low income countries alike to reinvigorate key priorities for us both in support of our their national road safety policies including as core objective to promote NCAPs in all world regards safer vehicles. Global NCAP strongly regions and also our advocacy campaign for supports the inclusion of road safety in the safer cars worldwide. new Global Goals framework and looks forward to their adoption with a casualty In 2015 we will also launch a new Stop the reduction target in 2015. Crash Partnership to promote crash avoidance systems such as electronic stability control, Soon after the UN Summit the 2nd Global autonomous emergency braking, and anti-lock High-Level Conference on Road Safety will brakes in motorcycles. These technologies be held in Brasilia on 18-19 November. This have great potential to contribute to the UN’s Ministerial Meeting will carry out a mid-term ambitious fatality reduction target by the end review of the UN Decade and represents an of the Decade. Global NCAP will work with a important opportunity to accelerate actions to range of partners to build consumer awareness improve vehicle safety. To influence both the of their life-saving potential and plan a launch debate on the Global Goal’s and the Decade event in Brazil to coincide with the High mid-term review, Global NCAP will publish a Level Global Conference on Road Safety in report promoting our democratising car safety November.

35 Annual Report & Financial Statements For the year ended 31 December 2014

Currently the following organisations are Associate members of comprehensive risk register. This was reviewed and Financial review and policy Global NCAP: updated significantly to follow best practice and provision of the UK Bribery Act 2010. - the Australasian New Car Assessment Programme - the Charity’s Anti-Bribery and Corruption policy; - the ASEAN New Car Assessment Programme Under the four major risk areas above the major risks comprise: Structure, Governance and - the Charity’s Anti-Fraud policy and Fraud Response Plan - the European New Car Assessment Programme - the Charity’s Conflict of Interest policy; - the Latin New Car Assessment Programme - Financial: Fraud/error, budgetary control, capacity/use Management - the Code of Conduct for Trustees; - the Insurance Institute for Highway Safety of resources, and taxation - the Charity’s travel and expenses policy for Trustees; and - Operational; loss of staff, loss of Trustees, health, safety Charity status - list of the members of the Board of Trustees and their Note: Other established NCAP’s attend the Advisory Council and and environment, disaster recovery and planning, suppliers, contact details. the Annual Meetings as Observers. Neither Associate Members nor illegal activity Global NCAP is registered in England and Wales as a charity, number Observer NCAPs have any role or responsibility in determining the - Reputational; non-compliance with UK charity/company 1141798, and as a company limited by guarantee, number 07513900. They are also sent a copy of the Trustees’ Liability Insurance. Trustees decision making of Global NCAP’s Trustees who act entirely in an law. beneficiary relationships, and stakeholders’ The liability of the Trustees, as members, is limited to £1. Global also receive and are expected to have read the Charity Commission’s independent capacity. perceptions; and NCAP is governed by its Articles of Association. The directors of publications: “CC3: The Essential Trustee: What you need to know”, - Bribery and Corruption: country risk, sector risk Global NCAP are its Trustees for the purposes of charity law. The “A Guide to Conflicts of Interests” and “A Guide to Corporate transaction risk, activity opportunity risk, activity partner terms of the charity’s Articles of Association exclude the power to Foundations’ as well as the Ministry of Justice Guidance on the UK Financial review risk, and internal risk. raise funds by the means of taxable trading, where such trading falls Bribery Act 2010. outside its charitable objects. Results for the year ended The Trustees have reviewed the major risks to which Global NCAP All Trustees must sign a Trustee declaration, declaring